He signs 1-year extension after paper asks about languishing contract
New Orleans Mayor Mitch Landrieu has agreed to keep a key homebuyer subsidy program alive by signing over $10 million in federal hurricane recovery aid to the Finance Authority of New Orleans.
New Orleans Mayor Mitch LandrieuThe Times-Picayune reported Tuesday that the Finance Authority's soft-second mortgage program for first-time homebuyers, an effort that has put 415 families into restored storm-damaged homes, had run out of money.
Finance Authority director Mtumishi St. Julien announced back in April that $10 million for more of the forgivable second mortgage loans was available. Prospective homebuyers, real estate agents, sellers and lenders sprung into action, signing purchase agreements and getting loans ready.
But the plan, signed in December by then-Mayor Ray Nagin, expired in July. Landrieu administration spokesman Ryan Berni said Tuesday evening that City Hall was still reviewing the deal.
Now, Berni says Landrieu actually signed the agreement to extend the funds through July 2011 on Tuesday.
"Our action on the CEA allows the program to move forward as planned with no new snags," Berni said. "As we have maintained all along, this is an agreement that was always going to be signed by Mayor Landrieu."